For the year ending December 31, 2013, the Castansa Corporation had income from continuing operations before income taxes of $2,000,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material: 1. During 2013, an earthquake caused $400,000 of damage to one of Castansas factories. The earthquake loss was considered unusual and infrequent. 2. In November 2013, Castansa sold its restaurant chain that qualified as a separate component of the entity. The company had adopted a plan to sell the chain in June of 2013. The operating income of the chain from January 1, 2013, through June of 2013 was $40,000. The operating income from June until November was $50,000 and the loss on sale of the chains assets was $250,000. 3. In 2013, Castansa sold some land that it was holding as an investment for $1,300,000. At the time of the sale, the land had a book value of $1,400,000. 4. In 2011, Castansas accountant omitted the annual adjustment for patent amortization expense of $300,000. The error was not discovered until 2013. Required: